SCMN 2150 EXAM 2 (ROBERT STRAW) TEST QUESTIONS WITH WELL DETAILED
SOLUTIONS
What is procurement?
The purchase of merchandise or services at the optimum possible total cost in the correct
amount and quality
What is strategic sourcing?
an institutional procurement process that continuously improves and re-evaluates the
purchasing activities of a company
What is the difference between traditional purchasing and strategic sourcing?
strategic sources seeks for continuous improvement
What is holding procurement back?
1. Lack of KPIs and metrics to monitor the effectiveness of the performance tomeet the
goals of the relationship. If KPIs do exist, they are generally focused on safety and
adherence to payment terms with a very limited view, if any, on performance and
productivity
2. Unwillingness for end-users / operations groups to modify day to day interactions with
suppliers
3. Lack of executive support and commitment to the new operating model developed
through the contracting process
What types of large-scale changes are companies planning in the coming out of the
pandemic?
,1. Expand their supply base
2. Shrink their global supply chain and rely on local suppliers
3. Increase inventory levels
4. Increase financing for key suppliers
What is Production
the process by which inputs are combined, transformed,and turned into outputs. May
involve products and/or services
What is manufacturing?
to transform materials via assembly, fabrication, conversion processes into a finished
product, especially by means of a large-scale industrial operation
What are three key decisions in the production and manufacturing process?
1. How much input
2. Which transformation process
3. How much output required to meet demand
What are the primary production performance objectives?
1. Quality objective - do things right
2. Speed objective - do things fast, productivity
3. Dependability objective - do things on time
4. Flexibility objective - develop ability to change
, 5. Cost objective - perform at minimum cost. You'll achieve this goal if you perform well on
the other objectives. In addition, we need to reduce waste and maintain a smooth flow of
output.
What are the differences in the Push and Pull production strategies?
PUSH:
- Mass Production
- "Push" product to customers
- Make to stock strategy
- One-size fits all
- Rigid, inflexible
- Slow, static
PULL:
- TPS & Lean
- Products "pulled" by demand
- Build to order methods
- Customization capabilities
- Flexible; scalable
- Fast flows
Lean Production
A model that emphasizes eliminating "waste" while delivering quality products at the least
cost to the manufacturer and customers.
SOLUTIONS
What is procurement?
The purchase of merchandise or services at the optimum possible total cost in the correct
amount and quality
What is strategic sourcing?
an institutional procurement process that continuously improves and re-evaluates the
purchasing activities of a company
What is the difference between traditional purchasing and strategic sourcing?
strategic sources seeks for continuous improvement
What is holding procurement back?
1. Lack of KPIs and metrics to monitor the effectiveness of the performance tomeet the
goals of the relationship. If KPIs do exist, they are generally focused on safety and
adherence to payment terms with a very limited view, if any, on performance and
productivity
2. Unwillingness for end-users / operations groups to modify day to day interactions with
suppliers
3. Lack of executive support and commitment to the new operating model developed
through the contracting process
What types of large-scale changes are companies planning in the coming out of the
pandemic?
,1. Expand their supply base
2. Shrink their global supply chain and rely on local suppliers
3. Increase inventory levels
4. Increase financing for key suppliers
What is Production
the process by which inputs are combined, transformed,and turned into outputs. May
involve products and/or services
What is manufacturing?
to transform materials via assembly, fabrication, conversion processes into a finished
product, especially by means of a large-scale industrial operation
What are three key decisions in the production and manufacturing process?
1. How much input
2. Which transformation process
3. How much output required to meet demand
What are the primary production performance objectives?
1. Quality objective - do things right
2. Speed objective - do things fast, productivity
3. Dependability objective - do things on time
4. Flexibility objective - develop ability to change
, 5. Cost objective - perform at minimum cost. You'll achieve this goal if you perform well on
the other objectives. In addition, we need to reduce waste and maintain a smooth flow of
output.
What are the differences in the Push and Pull production strategies?
PUSH:
- Mass Production
- "Push" product to customers
- Make to stock strategy
- One-size fits all
- Rigid, inflexible
- Slow, static
PULL:
- TPS & Lean
- Products "pulled" by demand
- Build to order methods
- Customization capabilities
- Flexible; scalable
- Fast flows
Lean Production
A model that emphasizes eliminating "waste" while delivering quality products at the least
cost to the manufacturer and customers.
